In an attempt to better focus on growth opportunities,
W.W. Grainger, Inc.
) recently modified its operating structure. The newly-formed
Americas business will comprise Canada, the U.S., Mexico, Panama,
Puerto Rico, Dominican Republic, Costa Rica, Colombia and Peru.
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To date, Grainger reported its operation in two segments - the
United States and Canada. Other businesses included operations in
Europe, Asia, Latin America and other U.S. operations.
With immediate effect, the Americas segment will be headed by
Court Carruthers, senior vice president and group president,
Americas. Carruthers had earlier served as senior vice president
and president, Grainger, U.S.
DG Macpherson, senior vice president and group president, Global
Supply Chain and International, will head Grainger's emerging
operations, which include Brazil, Europe and Asia. He will also
look after Grainger's supply chain, company strategy and the
single channel online business model in Japan and the U.S.
Macpherson had previously served as senior vice president and
president, Global Supply Chain and Company Strategy.
Furthermore, after 14 years of service, Mike Pulick, previously
senior vice president and president, Grainger International, is
leaving Grainger at the end of September to pursue a chief
executive role elsewhere.
Grainger has been building its multichannel model and growing its
e-commerce business and concentrated on growth in both mature and
growth markets. Grainger uses a multichannel business model to
provide customers with a range of options for finding and
purchasing products, utilizing sales representatives, direct
marketing materials, catalogs and eCommerce. These changes will
help the company position its business for growth by increasing
its focus and driving more integration across the organization.
However, the recent slowdown in sales is a concern. Grainger
plans to spend $150 million for growth initiatives in 2013. Even
though these initiatives will lead to additional share gains in
the future, it will weigh on margins in the short term.
Lake Forest, Ill.-based Grainger, which belongs to the industrial
services industry along with
HD Supply Holdings, Inc.
MSC Industrial Direct Co. Inc.
), is a leading North American distributor of material handling
equipment, safety and security supplies, lighting and electrical
products, power and hand tools, pumps and plumbing supplies,
cleaning and maintenance supplies, forestry and agriculture
equipment, building and home inspection supplies, vehicle and
fleet components, and various aftermarket components.
Grainger currently retains a Zacks Rank #3 (Hold).